{"id":205,"date":"2013-07-10T14:57:07","date_gmt":"2013-07-10T19:57:07","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=205"},"modified":"2020-01-22T12:30:06","modified_gmt":"2020-01-22T16:30:06","slug":"reporting-requirements","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/reporting-requirements\/","title":{"rendered":"Form D and SEC Reporting Requirements for Rule 506"},"content":{"rendered":"

Rule 506 of Reg D provides a safe harbor within the Securities and Exchange Act of 1933.\u00a0 Companies can raise money through a private placement offering without having to formerly register with the SEC and provide the disclosure documents required for issuing a public offering.\u00a0 Companies typically select Rule 506, rather than Rule 505, if they want to raise more than $5 million.\u00a0 You can raise an unlimited amount of money with Rule 506.<\/p>\n

The SEC reporting requirements when using Reg D are often open for interpretation.\u00a0 For example a company needs to provide financial disclosures but, as long as your funds are raised from accredited investors, the company decides what disclosures to give.\u00a0 This applies to all company information.\u00a0 As long as a company is making best efforts, and not attempting to commit fraud, the company itself can determine what disclosures to make.<\/p>\n

These loose guidelines lead many companies to believe that they don\u2019t need to do anything with the SEC as long as they are using Rule 505 or Rule 506.\u00a0 That is actually not the case.<\/p>\n

Companies selling restricted securities under Rule 506 of Reg D need to follow the SEC reporting requirements:<\/p>\n